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a) Discuss a Bank use of securitization to manage interest rate, credit and liquidity risks? Explain how each of the possible methods of securitization products

a) Discuss a Bank use of securitization to manage interest rate, credit and liquidity risks? Explain how each of the possible methods of securitization products affects the balance sheet and profitability of a Bank in the management of these risks. (10 marks)

b) Why should banks and other corporate financial firms be concerned about their level of profitability and exposure to risk? (10 marks)

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